Kisumu real estates industry striving.

If you drive by or rather take a walk on polyview estate as it is called nowadays, you will find it very hard to believe that a Kisumu county cemetery has been transformed to one of the sizzling Kisumu real estates with very high returns. The place which used to be a cemetery not so many years ago is now turning to be preferred place for most young people with money. These are young doctors, lawyers, and engineers etc who are either Kisumu real estates developers or tenants. This has led to construction of a good number of posh and luxurious buildings emerging rapidly in the region.

The appreciation goes to the rapid growing demand of properties in the region and therefore made the Kisumu municipality council to change the land use status to allow more of residential houses in the area. Majority of developer in Kisumu real estates industry are now yearning and scrambling for a piece of land in the former burial ground which used to be a cemetery in the late 1960’s. The council of Kisumu town lengthened it’s usage until mid 1990’s where it was afterwards relocated to the present cemetery in Mamboleo.

Initially, people from the nearby used to have this weird beliefs and superstitions of the dead buried in the area, for this reasons majority of people around use to think that this particular place was inhabitable. Just a decade ago, the land in the area almost cost nothing, but the high demand for land together with the persistent housing shortage, created room for more investors to venture into mainstreams of the former cemetery.

Bit by bit, the initial developers who got large pieces of land from the council of Kisumu subdivided the land and then sold it to third parties which eventually made prices to shoot very high, a quarter an acre went for 1 million shillings. A city planner in Kisumu says that polyview is among the fastest developing estates in Kisumu city with about six sites commencing construction every month and in excess of 50 requests for construction approvals every month.

This has attracted both high and middle income earners in Kisumu real estates, owning its closeness to the Kisumu CBD and accessibility, with also learning institutions pushing demands for hostel and hospitality facilities.

The current rates for a three bedroom rental house ranges between Kshs.20, 000-Kshs.30, 000 while for the same size of houses goes for around Kshs.5,000,000- Kshs.7,500,000 on sale.

Kisumu real estate business booming.

Kisumu real estate business is experiencing a property price boom with land and house prices surging exponentially, as masses move in to tap into the city’s flourishing market for available properties.

According to Marketing Executive Mr. Otieno of West Kenya Real Estate, the expansion of industries in Kisumu have attributed to recent infrastructural upgrades, has fuelled demand for housing in the city as workers in these sectors seek accommodation.

This has seen land, house and rental prices towering by nearly 1000 per cent amid fears that the rapidly rising prices risk becoming a bubble.

At the up-market Riat Hills estate (along the Kisumu-Kakamega Road), for instance, land prices have gone up to between Sh3 million and Sh7 million for an acre with rents for three-bedroom houses now ranging between Sh35,000 and Sh60,000.

Other city suburbs such as Nyamasaria , Kibos, Rabuor, Molem are also experiencing rapid real estate growth, which has pushed up property prices beyond the reach of many people.

“In 2010, half an acre plot in Nyamasaria just 5km from Kisumu CBD used to be sold at Sh300, 000. Now the same piece of land goes for Sh2, 000, 000,” said a one of the property agents in Kisumu realestates, adding that rents for bed-sitters in the area have surged to the region of Sh6, 000 per month.

Due to the persistence of the steady trend and in effort to cushion themselves against the rising costs of accommodation, many residents are now moving further away from the city centre where property prices are lower. This trend has opened up areas further away from the city.

“Areas such as Kibos, Holo and Awasi which were empty shrub lands several years ago are now dotted with residential units with most of the rentals being fully-booked months before completion,” said one of the agencies in Kisumu real estate.

It is in response to high prices of land and growing demand for housing that developers are now building high rise buildings to fully maximize on land use.

This is evident from the high number of apartment blocks under construction in various estates in Kisumu, including areas such as Milimani, which were previously a no-go zone for developers of high-rise buildings.

Many investors contend they stand a better chance of getting good returns of their investments courtesy of the relatively higher rents in the lake-side city compared to Nairobi, Mombasa, Eldoret and Nakuru.

West Kenya real estate offers the best real estate agency services you can ever ask for anywhere. As a seller, we eliminate the stress of having to ask everywhere for anyone interested in buying a land or a building or just investing in kisumu real estate property. We get the details of your property and then we handle the difficult part of locating buyers all over the world and everywhere.

Now is the time to buy and invest with West Kenya real estate!  Properties prices will not stay suppressed over the long term.  Don’t let this opportunity pass you by!

Visit www.westkenyarealestate.com for more information on properties available for sale.

High Rent Sparks Wrath of Kisumu Real Estates Residents

Following the passed Finance Bill by the county assembly of Kisumu County and the general escalating prices of land within Kisumu environs, a good number of Kisumu residents have raised concerned over the whole issue.  Kisumu real estates industry have been dwindling for quite a long time, where a two bedroom house in areas like Manyatta, Migosi, Nyawita, Kondele, Mamboleo  use to be in a range of Kshs.5,000-Kshs.8000 at most.

Now you cannot manage to get the same size of houses in the mentioned areas at the same rent rating, rent has been shooting up in these precincts year after year. Presently the rent in these specific areas has double and almost tripling.

Not even the County houses in the region have been left out since many residents of county houses has recently protested that the county taxes are extreme hence forcing them to fork out more than 100 percent increment of the initial rent. This adjustment has made the resident to criticize the County assembly for approving the Financial Bill.

The residents of Kisumu County condemned the member of County assembly for also hiking the construction fee by 100 plus percent. They fear that they will have to dig deep into their pockets as landlords will probably take advantage of the situation and increase rent.

The residents cried foul that with the escalated cost of construction, the private developers will definitely increase rent which will later affect them directly.

This strategy by the county of Kisumu will generate more revenue to the county whereas it may also scare away some of the developers and private investors; however some residents proposed that the Financial Bill needs to be amended.

County houses like Arina, Ondiek, Makasembo, Kibuye and Argwings Kodhek estates we’re expected to be increased per bill hence they also proposed an amendment to that effect.

A ward representative in Nyalenda B said that there should be no fuss over the Financial Bill since those living in county house pay as little as nothing yet again the county needs to generate revenues. He also said that the move to pass the bill is highly welcome since it will generate money to the county and a boost since the National government is providing very little cash to the counties.

A two bedroom house rent used to be kshs.2, 000 in Arina, Makasembo and Ondiek estate has increased to Kshs.4, 000, and a three bedroom house at Argwings Kodhek increased from Kshs.4, 000 to Kshs.10, 000.

The member of the county assembly realized that it is very unfair for occupants in the county houses to pay less yet they sublet houses and charge exorbitant rates.

Architectural designs changes fortunes in Kisumu real estate industry

Constructions with foreign architectural designs are developing across many real estates industry in Kenya. The magnificence of that is some remnant of the buildings in Kisumu real estate, used to be considered posh and luxurious in the recent times are now being wiped out of existence. A big number of real estate investors; home buyers and tenants in these days do not just look at a location, and most importantly the price as major factors to consider during buying or renting a home.  Nowadays people take a good look at security matters and building designs just to have a little more ambience in there preferences.

For example a spot-check in Kisumu municipality indicates that majority of residential houses constructed more than three decades ago are now being demolished and being replaced with the latest ultra-modern structures within the city. The enforcement of zoning regulation within the local authority is mainly contributing to the latest mode of architectural designs not only in Kisumu real estate but also in urban settlements. This drift has not spared the institutional housing schemes in Kisumu region, for example, estate like Kenya-re, pipeline, Kenya railways, Tom Mboya and even Robert Ouko are finding it very rough to compete with the emerging developments of bungalows, maisonettes, town houses, flats etc. consequently the rental and land prices here exceeds the others overwhelmingly.

Players in Kisumu real estate industry conversely view this as very healthy to the construction sector since it generates more room for competition. Mr. Onyango, the legal consultant for Kisumu property says that the new architectural designs will help boost property value and magnetize urbane clients with higher buying power and therefore higher rental returns.

A good number of property developers and owners are coming to terms with this vicious reality and now opting to renovate and modernize their old properties so that they can also compete with the new architectural designs. For example, more that Kshs 40 million has been used to bring back to life Nyalenda railways estate. For instance, a three bedroom house which was around Kshs.5000 in rent is now ranging from Kshs.25000 going upwards, that is an increment of about 500 per cent. Onyango says that the hidden beauty secret of this is that; the tenant who can afford to pay high rent also has a low default rate of rent payment. 

This competition on architectural designs facilitates for local authorities to continue enforcing zone regulations and slam messy development in the region then at the same time, property investors continue to gain more from the value appreciation. “the surfacing of new structural designs do really hinders the city planning in several ways, categorically it keeps the planners on toes and also create room for durable buildings” says Evans Otieno, a Marketing Executive at a real estate firm.

“Most home owners are in search for sophistication; these are delineated by structural a design that complicates the need to enhance security and incorporate technological gadgets, while at
the same time taking into consideration the climatic conditions. A house
installed with pay TV, alarm system and CCTV will attract clients more compared
to just a standard structure,” says Otieno. A town planner in Kisumu real estate industry says new zoning
regulations will help create sustainable real estate development without the

Formula to pursue whilst buying in Kisumu real estate

The customer or investor should consult the real estate agency, land registry offices, investor for the reason, land valuers, ground/land architect e.t.c. just to ascertain that procedure are followed. The buyers will then be introduced to the agencies accountable for legally acquire property to make sure that they could easily find the rightful and legal owners.

The buyer will incur most of the transaction costs of the property this could be because at time making a surf for an exact come across sale is getting longer than expected or even the land titles are seldom have verifications complexities. The legal fee for a broker who is helping the buyer to acquire a house is normally 10% of the entire costs of the property. These transactions are carried out and paid in Kenyan shillings after negotiations on all involved parties.

It is very wise to deal with registered real estate companies or agencies within Kisumu city as far as real estate is concerned; this is because there have been many instances of fraudulent arising frequently resulting to varied detrimental effects to both the buyer and of course the land owner. Currently I recommend West Kenya Real Estate Company. It is a premier real estate marketing agency situated in Kisumu city, Kisumu County. They've expertise essential to assist you locate your ideal property. This company is registered and trusted by many just not only of tremendous amount of industry experience that they would have but also owing to firm grasp of one's opportunities currently presented within suppressed Kisumu real estate market. They could also walk you along with the complete buying process free of charge, is going to take time to carefully listen to your real estate wish list then present you with several options, employed in a proactive manner to enable you select the property that exactly matches your preferences.

Kisumu has a quite number of expatriates, majority being Asians most of whom lives just besides the CBD i.e. Milimani, Dunga, Patel flats, Robert ouko, Polyview e.t.c. These expatriates live in detached houses that happen to be large and have both garage and gardens inside their compounds. These lavish houses are normally owned, rented or leased. The leased and rented one’s yields a substantial rate of revenue to the investors.

For one example, you should purchase an acre part of land in Milimani with the range of 30M-50M (Kenyan shillings) then sub-divide their land into four then put up a Bungalow on each. Whenever the building is completed, the bungalows can simply be sold out at a range of between 45M-65M (Kenyan shillings).

While for renting or leasing will affect the duration of leasing hence still returns huge profits towards the property investors in Kisumu County.

Another venture to explore while thinking to invest in Kisumu real estate’s is that huge populations in Kisumu County do not own houses and therefore creates a good environment to explore and invests in Rental houses in Kisumu. Especially considering that the expansion of the town is in progress where major roads are being expanded, buildings are now being erected almost everywhere within Kisumu county. This is a very ripe opportunity for investors and developer to discover the high renting situations within Kisumu precincts and utilize the opportunity properly.

As the city is constant to progress renting residential houses within the CBD is becoming increasingly expensive, this high increment is driving the most common mwananchi away to town regarding try and find an affordable place within his/her pocket reach. Many residents can not afford building or buying their own houses which you go out the majority with no other choice than purchase rental affordable houses.

This trend has made a significant change on Kisumu real estate sector since investor are scrambling to utilized this prime method to buy lands and build several affordable rental houses despite the fact that the residents also scramble to accumulate new an lavish rental houses hence as time will pass the stakeholders within this thriving industry reaps a lot out of it.

Kindly visit our website for more at: www.westkenyarealestate.com